Bristol startup creates ‘sponsored finance’ to support local climate change projects

Bristol-based startup business initiative, the PyTerra Xchange, is launching a platform designed to offer corporates a simple way to meet their Corporate Social Responsibility (CSR) commitments by providing much needed investment in local climate change projects.

The PyTerra Xchange is piloting a new investment vehicle called ‘sponsored finance’. It works by creating an investment fund, enhanced with sponsorship benefits, on behalf of corporates. The finance is used to support local projects, specifically those in the low carbon and renewable energy (LCRE) sector.  

The concept has been developed by PyTerra founder David Arscott, who sees how institutional investors and stakeholders increasingly want their corporate clients to show that they are making meaningful climate-related impacts.

Corporations have CSR policies with targets and commitments which can be satisfied by making a local impact, but they don’t have the local connections or resources to identify where, and how, they should offer support.

A recent PwC report ‘Unlocking capital for Net Zero infrastructure’ commented that if a traditional approach to infrastructure investment continues to be taken, over 50% of the £41bn annual investment needed in the UK to create sufficient Net Zero infrastructure will not be delivered.

One of the first organisations anticipated to participate in this scheme is Bristol Energy Cooperative which is actively seeking corporate sector engagement in low carbon energy schemes such as new housing microgrids, grid servicing batteries and solar PV.

To support corporate investors in the initiative, the PyTerra Xchange will also be releasing its Local Opportunities Map in 2021. Focusing on Bristol as the pilot city, this map will act as a listing for all low carbon projects which are seeking investment.

On the launch of the PyTerra Xchange, David Arscott said: “We are extremely excited to be introducing the PyTerra Xchange to Bristol. As a city, Bristol has a strong focus on sustainable activity and there is a rich ecosystem of innovation and emerging projects which need vital investment to become a reality. It also has a strong corporate community with historic support for community endeavour.

“PyTerra seeks to bridge the gap between corporates and communities, channelling investment into projects which will benefit our whole community while also giving large companies a tangible way to offset their environmental impact over time.   

“With Bristol’s target of Net Zero carbon emissions by 2030, we are inviting businesses that want to make an impact locally to engage with us now.”

If you want to find out more information about the PyTerra Xchange, please visit https://www.pyterra.co.uk.